Mortgage rates rose after the Federal Open Market Committee announced that they were raising the federal funds rate by a quarter point yesterday afternoon. That trend is continuing today after some positive economic data. Read on for more details.
Where are mortgage rates going?
Federal Reserve raises rates as expected
Well, it happened. Yesterday afternoon the Federal Reserve’s Federal Open Market Committee concluded their two-day meeting with a written statement that declared they were raising the nation’s benchmark interest rate–the federal funds rate–by a quarter point to 1.25%-1.5%.
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That was the third increase of 2017 and the fourth in twelve months. The decision was widely anticipated by financial market participants, so there wasn’t much fuss in in the markets.
Predictably, we saw investors move more into stocks and out of bonds. That reaction offset what was a significant drop in the 10-year Treasury yield (the best market indicator of where mortgage rates are going), due to a disappointing Consumer Prices Index reading in the morning.
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Rate/Float Recommendation
Lock now
Given that mortgage rates are on the rise and are expected to continue trending higher for the near future, we think that it’s prudent for anyone looking to purchase a home or refinance their current mortgage to lock sooner rather than later.
Click here to head to our Mortgage Builder and figure out how much you could save.
Today’s economic data:
Jobless Claims
Application filed for U.S. unemployment benefits came in at 225,000 for the week of 12/9/17.
Retail Sales
Retail sales for November rose 0.8% from the previous month. Retail sales less autos ticked up 1.0%. Less autos and gas rose 0.8%. It’s a strong report that bodes well for the holiday shopping season.
Import and Export Prices
Import prices increased 0.7% from the previous month in November, putting them at 3.1% on the year. Export prices rose 0.5% month over month and 3.1% year over year.
Business Inventories
Business inventories for October fell 0.1%. That’s exactly what analysts had predicted.
PMI Composite Flash
The composite flash came in at 53.0 for December. Manufacturing hit 55.0 and services came in at 52.4.
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Notable events this week:
Monday:
- JOLTS
- 10-Yr Note Auction
Tuesday:
- FOMC Meeting Starts
- PPI-FD
Wednesday:
- Consumer Price Index
- EIA Petroleum Status Report
- FOMC Meeting Ends
Thursday:
- Jobless Claims
- Retail Sales
- Import and Export Prices
- Business Inventories
Friday:
- Empire State Mfg Survey
- Industrial Production
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from Total Mortgage Blog http://ift.tt/2CjX3ml
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